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Knight Capital Group Inc (NYSE: KCG) Investor Securities Class Action Lawsuit 08/17/2012

  • If you purchased shares of Knight Capital Group Inc (NYSE: KCG), you might have certain options and should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Knight Capital Group Inc.
Security
NYSE: KCG

Case Name
Knight Capital Group Shareholder Class Action Lawsuit 08/17/2012
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Western District of Tennessee

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Summary

December 20, 2012 - The plaintiff filed a notice of voluntary dismissal without prejudice.
November 5, 2012 - Lead plaintiff motions were filed.

August 17, 2012 - An investor in shares of Knight Capital Group Inc (NYSE: KCG) filed a lawsuit against Knight Capital Group Inc over alleged securities laws violations in connection with its costly glitch in trading software that caused Knight Capital Group Inc to lose more than $400 million.

According to the complaint the plaintiff alleges on behalf of all persons who owned or otherwise acquired the common stock of Knight Capital Group Inc (NYSE: KCG) on the New York Stock Exchange (“NYSE”) between February 29, 2012, and August 1, 2012, that Knight Capital Group Inc (NYSE: KCG) violated federal securities laws.

Shares of Knight Capital Group Inc (NYSE: KCG) dropped from $10. 34 per share to as low as $2.329 on August 2, 2012, after Knight Capital Group Inc experienced a technological glitch related to the installation of trading software that resulted in numerous erroneous orders.

When trading opened on the NYSE on Wednesday August 1st, 2012, a newly installed but faulty software that caused Knight Capital Group Inc to acquire a large volume of stock shares at unfavorable prices. The plaintiff says that at some point on August 1, 2012 Knight Capital Group Inc held nearly $7 billion worth of stocks as a result of a faulty trading algorithm or algorithms.

In a statement, Knight Capital Group Inc said that on August 1, 2012 the “issue was related to Knight's installation of trading software and resulted in Knight sending numerous erroneous orders in NYSE-listed securities into the market. This software has been removed from the company's systems. Furthermore, Knight Capital Group Inc said that, it “has traded out of its entire erroneous trade position, which has resulted in a realized pre-tax loss of approximately $440 million.

Shares of Knight Capital Group Inc (NYSE: KCG) closed on August 27, 2012, at $2.78 per share, significantly below its current 52 week High of $14.00 per share.